As we look to celebrate 50 years of membership in the European Union (EU) next year, Ireland’s global mindset has greatly contributed to our ability to attract foreign direct investment (FDI).
According to The Heritage Foundation’s 2022 Index of Economic Freedom, Ireland ranks second within Europe and third globally in attracting FDI. These rankings, coupled with our newfound status as the only English-speaking EU member as a result of Brexit, position the country well for years to come.
Our largest source of FDI is from the United States (US). US relations with Ireland have long been based on common ancestral ties and shared values. The Irish and American people enjoy a special bond, as more than 30 million Americans (almost 10% of the population) claim Irish heritage.
FDI from the US remained strong throughout the pandemic and post-Brexit, with FDI employment reaching record levels in 2021.
The American Chamber of Commerce (ACC) noted that in 2021, there were over 900 US multinationals with operations in Ireland, supporting over 342,000 jobs and spending more than €27 billion in the Irish economy, which is estimated to account for 60 percent of Ireland’s corporation tax income. However, it’s not all omni directional.
Enterprise Ireland reported that in 2021, employment by Irish businesses in the US reached 110,000 and outbound Irish investment to the US hit $225.5 billion, ranking Ireland in the top nine investment sources to the United States. There are over 900 Irish companies that operate across all 50 states. This is impressive for a country of just over five million people.
RSM Ireland - Powered by Our culture
At RSM, we understand that delivering on our brand promise goes beyond quality service.
Expanding into foreign markets, or starting operations in the US or Ireland, can be complicated. RSM provides informed, multidisciplinary guidance to foreign direct investors, supporting market entry, identifying risks, navigating tax regulations and more. Our service is anchored by Aidan Byrne (RSM Ireland) and John McCourt (RSM US LLP), partners with deep expertise in advising Irish/US FDI businesses, and supported by multidisciplinary subject matter experts.
We believe that everything we do should be “Powered by Our Culture”. Even with Ireland’s strong bond with the US, each US company operating here (and vice versa) must navigate cultural, business and professional nuances. RSM’s unique approach to providing the best possible experience for our clients involves a joint bilateral cultural team focused on our clients ‘beyond the technical’.
RSM Ireland’s US desk works jointly with RSM US LLP’s Ireland Practice with a singular combined purpose of delivering the power of being understood, regardless of time zones or international borders. At both RSM Ireland and RSM US LLP, over 50% of our respective clients are globally active.
RSM Ireland and RSM US LLP are member firms of RSM International, a leading global audit, tax and consulting network focused on the middle market, with 51,000+ people in over 860 offices in 123 countries culminating in total global revenues of $7.26 billion.
Published in Accountancy Ireland, Aug 17, 2022